Long lines have been a common feature at CHPA (Housing Ministry) on Brickdam for public house lots or turnkey homes over the last couple decades. Many return home disappointed after the processing of their applications. Government can’t keep up with demand for lots or homes. More government intervention is required to address the problem of a shortage of housing.
Since late 2020, the government has spent hundreds of billions of dollars to ready land for house lots and or build turnkey homes. Hundreds of billions were also spent during the preceding two decades. But there is still a huge shortfall in lots; government can’t keep pace with demand. Land is available but is not developed fast enough to distribute to the (poorer sections of the) public in need.
While the rich can afford to purchase high cost developed lots in exclusive areas from private landholders or even the government, the poor can’t afford to buy high priced lots. More needs to be done to ready public land so that the poorer sections of society and the working class can realize their dream of owning a lot and building a house instead of renting or living with extended families.
While the government distributed lots at low cost to thousands of people, many can’t afford to build a house. The government needs to lend a helping hand to construct houses. The construction sector has been extremely hard hit by inflation, high interest rates and limited skilled labor. Savings can’t keep pace with rentals or purchasing materials for building houses. Government had offered some subventions in cement and other construction materials. More assistance is needed to help people become houseowners.
Housing of late has become unaffordable for a large segment of the population. More and more people, new families and migrants from rural areas into towns, are living in rentals especially in urban areas. Rural dwellers who come to Georgetown are largely renters who can barely afford the rent and food. Cheaper housing is needed. Lots can be provided to those who are not homeowners in areas closest to where employed. Georgetown and surrounding areas are already overcrowded. Government should develop lots in outer areas to address housing shortage and homelessness.
There may be an estimated 25K households living in unaffordable or crowded housing or have been homeless. Private rentals have been increasing but can’t keep up with demand especially that the foreign workforce is also growing and competing with locals for housing units. This drives rental prices up.
The key to resolving housing affordability is to significantly increase the supply of housing lots and turnkey homes. Land is available; there are tens of thousands of acres of non-arable land (sand areas) which can be prepared for lotting. Money is not an issue as prior to 2020 to prepare land for lotting. If money is an issue, government can raise property taxes (on super wealthy homeowners) by one or two percent and use the revenues to clear more land (preferably non-agro land) and ready it for house lots. The rich, unlike the poor or working class, can afford an additional 1% property taxes. Alternatively, the government can use revenues from oil to prepare efficient green houses for the poor; the NRF Act allows for green development. Government can subsidize loans so the working class making it affordable for the poorer and working classes to take loans to put up houses, thereby reducing demand for new homes.
